Frontier Airlines was formed in June 1950 through the merger
of three airlines;
Monarch Airlines which flew the Colorado route, Challenger Airlines which flew the Colorado and Wyoming routes, Arizona Airways which flew routes in Arizona. The merger was in part due to the
Airmail
Act of 1930. Airlines where competing for US Airmail contracts and
for a passenger market. Frontier Airlines already established routes in
Colorado, Wyoming and Arizona began strengthening its fronts by adding
new markets to its service. By the end of the 1950's Frontier Airlines
had established routes in Missouri, Montana, North Dakota and Nebraska.

In the 1960's airlines
where heavily competing for dominance in the passenger market. Many of
the airlines where developing incentives that would lore passenger to
their carrier. By 1963, Frontier Airlines initiated several passenger
saving plans that resulted in the companies gross earnings improving by
25 percent. By the mid 60's the airline was providing air travel to over
a half a million passengers.

Its aircraft fleet had
grown from the old DC-3 to Convair 580 and then to the Boeing 727.
Frontier merged with Central Airlines which allow the company to assume
routes in the Midwest and the southwest. With the expansion into other
routes, it became much more difficult for Frontier to hold its front
from larger carriers who had initiated price was against the carrier.

By the mid 1970's Frontier
had acquired routes in Canada and Mexico and continued to expand its fleet
of aircraft which now included the Boeing 737 and it continued to make
record profits. However, by the early 1980's Frontier began to experience
unforeseen financial difficulties as a result of a depressed economy and
high cost of aviation fuel. Many economist blamed the sump in the market was
due
Airport and Airway Development Act
of 1970. Which brought about landing fees, aviation fuel tax, runway
fees and passenger tax. Frontier Airlines was now reporting record loses and
was having great difficulties in keeping its front doors open. Frontier
Airline's board of directors had approved a plan that would allow its
employees to purchase over 200 million dollars of Frontier stock at 17
dollars a share. However, Frank Lorenzo was
willing to pay more for each share of Frontier company stock.

However, this angered
Frontier employees as they were aware of Lorenzo reputation. People Airlines
stepped in and made an offer to purchase company stock at 24 dollars a
share. With great hesitance, Frontier's board approved the sale with People
Express Airlines. However, by the mid 80's Frontier Airlines was unable to
improve its fiscal matters. In the summer of 1986 Frontier representatives
entered into talks with representatives of United Airlines to sell off
Frontiers holdings. However, talks broke down when United employees learned
how Frontier employees would be absorbed by United. After talks broke down
with United Airlines, Frontier was unable to identify an appropriate buyer
and was forced to file bankruptcy and close it doors. Upon Frontiers closing
its door, Continental Airlines stepped in and
purchased Frontiers holdings and began flying its routes.